Over a year ago, the American Rescue Plan Act was enacted to provide stimulus funds to individuals and families dealing with the lingering effects of the coronavirus. However, not everyone has received the funds made possible by the COVID-19 relief law.
The IRS asks anyone who hasn’t received all of their money transferred into their bank accounts to take action right away. It’s critical to follow the Internal Revenue Service’s guidelines to receive the money you’re owed, as you could be entitled to thousands of dollars.
The IRS wants to make sure that taxpayers receive their stimulus funds.
On April 19, 2022, the IRS published a press statement addressing the issue of unpaid stimulus monies. The IRS wanted to ensure that people took advantage of the enhanced Child Tax Credit.
The American Rescue Plan Act authorized numerous types of stimulus help, including the enhanced Child Tax Credit. The existing Child Tax Credit was doubled from $2,000 to $3,600 for children under six and from $3,000 to $4,000 for older children. Under the former standards, only $1,400 was refundable, but the American Rescue Plan Act made the entire credit refundable. It further stipulated that half of the credit would be given out between July and December. These provisions are only applicable to the tax year 2021.
However, not everyone received their money. Even parents who received those monthly payments last year are still eligible for half of the enhanced credit’s leftover funds. The IRS issued a press statement reminding parents to claim their monies and assuring taxpayers that it is not too late.
Even though the tax deadline has gone by, you can still claim your refund.
To claim overdue stimulus funds, you’ll need to file a tax return in 2021. Although the deadline has gone, the IRS has stated in a recent news release that it is not too late to file your taxes and claim your money.
“Families who do not owe the IRS taxes can submit their 2021 tax return and claim the Child Tax Credit for the 2021 tax year until April 15, 2025, without incurring any penalties,” according to the IRS announcement.
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You don’t want to wait years to get your hands on these funds, even though you have plenty of time. So, if you haven’t yet submitted your 2021 tax returns, do so as soon as possible. There are free online filing tools available on the IRS website that you may use to file your tax forms, so check them out and choose one that works for you.